What To Expect From Tesla On Monday

Tesla Inc.
TSLA
is scheduled to report earnings after Monday’s close. The stock hit a record high of $900.40/share in 2021 and is currently trading near $729/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

Earnings Preview:

The company is expected to report a gain of $0.78/share on $10.24 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $0.86/share. The Whisper number is the Street’s unofficial view on earnings.

A Closer Look At The Fundamentals:

The company has enjoyed steady earnings growth over the past four quarters is well positioned for more growth over the years ahead. In 2020, the company earned $2.24 and 2021’s numbers are expected to be $4.14, and 2022’s numbers are $6.23. That’s very strong annual earnings per share growth and that typically bodes well for a stock.

A Closer Look At The Technicals:

Technically, the stock acting very well and is building a bullish sideways consolidation above its 50 day moving average line ahead of earnings. The stock enjoyed a huge move from March 2020-January 2021. Since then, the stock has paused to digest that huge move and is setting up nicely to race higher.

Pay Attention To How The Stock Reacts To The News:

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.